Market Trends of West Africa Platform Supply Vessel (PSV) Industry
This section covers the major market trends shaping the West Africa Platform Supply Vessel Market according to our research experts:
Upcoming Upstream Activities are Likely to Drive the Market
- With the growing demand for crude in international markets like Asia-Pacific, West African countries like Nigeria have significantly increased their oil and gas activities in the offshore region. In 2019, Nigeria has completed wells of around 100, an increase of 19 wells from the previous year.
- Nigeria in May 2021 concluded an agreement to invest nearly USD 10 billion for deep-water oil exploration. The Nigerian National Petroleum Corp. with Royal Dutch Shell Plc, Exxon Mobil Corp., Total SA, and Eni SpA is likely to create a new production sharing contract for Oil Mining Lease 118.
- To develop its offshore oil & gas sector, countries like Ghana are likely to borrow USD 1.7 billion to accelerate oil and gas exploration by acquiring and developing assets.
- Further, Senegal has a few upcoming projects like a development project in the Sangomar field. By 2023, the first phase of the project is targeting to produce 230 million barrels of crude oil.
- Hence, with such upcoming projects, the region is likely to drive the market studied during the forecast period.
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Nigeria is Likely to Dominate the Market
- Nigeria is the leading country in the region for oil & gas production. In 2020, Nigeria had the highest crude oil production of around 1798 thousand barrels per day. Moreover, it had a gas production of around a 49.4billion cubic meters.
- With a target of increasing its crude oil reserves up to 40billion barrels by 2025, the country is likely to increase its exploration and production activities in both onshore and offshore locations.
- The country has a few upcoming offshore projects, like the offshore development work on Etan & Zabazaba oilfields in the deepwater OPL 245 block. Hence, such a project would create demand for PSV in the West African region.
- Further, the country has proven reserves of around 36.9 thousand million barrels of crude oil, and 5.5 trillion cubic meters in 2020. The reserves, along with upcoming investments and targets, are expected to have a positive outlook for the PSV market in Nigeria, thus making it dominant in the region during the study period.
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